KUALA LUMPUR: Malaysian palm oil futures edged up on Tuesday to trade in a tight range, as traders weighed better exports, concerns over stormy weather hurting output and a stronger ringgit.
The benchmark palm oil contract for January delivery on the Bursa Malaysia Derivatives Exchange gained 37 ringgit, or 0.9%, to 4,149 ringgit ($904.91) a tonne by the midday break.
The contract tracked higher Chicago soyoil prices higher, but palm’s huge discount to soyoil and optimism over November exports kept sellers at bay, a Kuala Lumpur-based trader said.
The ringgit, palm’s currency of trade, rose for a third day against the dollar, making the commodity more expensive for holders of other currencies.
Disruptions to palm oil supplies because of tropical storms in top producers Indonesia and Malaysia are expected to continue into the first quarter of 2023, keeping prices strong, the Malaysian Palm Oil Board (MPOB) said on Monday.
MPOB warned of a tough 2023 for the market, with the persistence of global uncertainties in weather, geopolitics and economics that have caused wide price swings this year.
Palm slumps over 4% as ringgit firms, rival oils weaken
India’s palm oil imports in 2021/22 fell 4.8% from a year earlier as overseas buying of soyoil jumped 45.3% to a record high after Indonesia restricted shipments of palm oil, a trade body said on Monday.
Dalian’s most-active soyoil contract fell 0.8%, while its palm oil contract was down 2.3%.
Soyoil prices on the Chicago Board of Trade rose 0.3%. Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.